Sales of zonal isolation packers surge with resurgence of well drilling operations
According to a recent study from Fact.MR, sales of zonal isolation packers exceeded 25,438 units in 2018 and are estimated to surpass 26,000 units in 2019. The study found an increasing need from operators to address the issue of gas migration, which continues to be one of the longstanding challenges requiring immediate attention. This, in turn, is paving favorable grounds for adoption of effective zonal isolation technologies, including zonal isolation packers.
According to the study, one of the chief aspects fueling demand is rising need for effective zonal isolation technologies to prevent damage of casing and other formations in a wellbore. Moreover, zonal isolation packers are also widely used as an ideal anchor point for effective production tubing, creating untapped potential for the stakeholders of zonal isolation packers market.
The study opines that demand for zonal isolation packers is closely associated with two of the highly valued aspects – well lifecycle and workover. With resurgence of well drilling activities worldwide, industry operators seek effective zonal isolation packers that ensure enhanced well lifecycle and reduced workover. Consistent growth of well-intervention procedures across the existing oilfields for production ramp-up is among the chief aspects bolstering the adoption of zonal isolation packers.
The study states that end-users will continue to show marked preferences for permanent zonal isolation packers, owing to their excellent performance compared with retrievable and open-hole variants. High sealing and gripping capabilities and low costs remain two key touchpoints boosting sales of permanent zonal isolation packers, with global sales estimated to surpass 15,600 units in 2019. Demand for zonal isolation packers from onshore applications will continue to grow by leaps and bounds, with global demand estimated to surpass 22,500 units in 2019.
Manufacturers focus on product benchmarking as a continuous improvement tool
The zonal isolation packers market landscape portrays hegemony of the top three players – Halliburton, Schlumberger, and Baker Hughes, whose growth is upholding by robust product portfolios. Furthermore, the zonal isolation packers market also demonstrates larger presence of regional players, which may compel the leading players to deliberately cut down their product prices for improving their product positioning. Moreover, manufacturers in the zonal isolation packers market are also focusing on product benchmarking as a continuous improvement tool, wherein they are comparing their offerings with the industry-best products to pick out areas of improvement.
According to the study, the key players in the zonal isolation packers market are positioning their production units in close proximity with prominent oil and gas sites, with an objective of minimizing the transportation costs. In line with the competitive market environment, the end-users continue to be in a stronger position in the zonal isolation packers market landscape. Sensing the aforementioned, manufacturers in the zonal isolation packers are vying to establish differential approaches as compared to that of their rivals in order to ensure that product designs are appropriate and aligned with evolving end-user requirements.
The report also analyzes the potential opportunities in zonal isolation packers market from 2019 to 2027. According to the report, the zonal isolation packers market is estimated to witness growth at a volume CAGR of over 3.5% during the forecast period.
